Opening Stock

Opening Stock is the quantity and value of inventory available at the beginning of an accounting period. It represents the closing stock from the previous accounting period and serves as the starting inventory balance for the new financial year.

ERPNext provides different methods for recording opening stock depending on whether the Items are serialized, batched, or standard inventory Items.

Example

If a company closes the previous financial year with:

500 Bags of Cement
200 Steel Rods
50 Electric Motors

These quantities become the Opening Stock for the new accounting period.

1. Prerequisites

Before recording Opening Stock, ensure the following are configured:

Create the required Warehouses.
Link each Warehouse with the appropriate inventory accounting ledgers.

Note
Opening Stock should generally be entered before regular inventory transactions begin to ensure accurate stock valuation and accounting balances.

2. Opening Stock for Non-Serialized Items

For standard inventory items that do not use Serial Numbers or Batch Numbers, ERPNext recommends using Stock Reconciliation.

Stock Reconciliation allows you to:

Set the opening quantity.
Set the valuation rate.
Automatically calculate the total stock value.
Update inventory balances accurately.

This is the preferred method for recording opening balances of regular inventory Items.

3. Opening Stock for Serialized and Batched Items

Items that are managed using Serial Numbers or Batch Numbers require additional information during stock entry.

Before recording opening stock:

Create the required Batch records.
Create the required Serial Number records.

Then record the opening stock using a Material Receipt Stock Entry.

Steps

Go to Stock → Stock Transactions → Stock Entry.
Click New.
Select Material Receipt as the Stock Entry Type.
Set Is Opening to Yes.
Select the Default Target Warehouse.
Add the Item, Quantity, and Basic Rate.
Select the appropriate Batch Number (if applicable).
Select the required Serial Numbers (if applicable).
Click Save and Submit.

Example

Suppose you have received:

10 Laptops (Serialized)
100 Medicine Bottles (Batch Managed)

Create the required Serial Numbers and Batch records first, then use a Material Receipt with Is Opening = Yes to record the opening inventory.

4. Choosing the Right Method

Item Type	Recommended Method
Standard Inventory Items	Stock Reconciliation
Serialized Items	Material Receipt (Is Opening = Yes)
Batch Managed Items	Material Receipt (Is Opening = Yes)
Serialized & Batch Managed Items	Material Receipt (Is Opening = Yes)

5. Benefits of Recording Opening Stock

Establishes accurate opening inventory balances.
Ensures correct stock valuation.
Supports accurate inventory accounting.
Maintains complete stock history from the beginning of the accounting period.
Provides a reliable foundation for future stock transactions.

Summary

Opening Stock in ERPNext represents the inventory available at the start of an accounting period. Standard inventory Items are typically recorded using Stock Reconciliation, while serialized and batch-managed Items should be entered through a Material Receipt with the Is Opening option enabled. Recording opening stock correctly ensures accurate inventory valuation and accounting throughout the financial year.

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